Brokerage Radar: BEL, NMDC get "Buy" call; power and paint stocks in focus

Stock Market Trend

Check the brokerage calls and comments on the stocks and sectors in action. Today we cover OMCs, power sector, and IT stocks among others.

Underperform Call, Target `150/Sh

Zee Board Approves `2,000 Cr Fundraising As Sector Landscape Is Changing

With This Fundraising, Zee Is Looking To Fortify Ahead Of Increased Competition

Await Fundraising & Zee’s Pursuit Of Growth Opportunities

Zee’s Low Promoter Ownership Of 4% Remains A Key Challenge

CLSA On OMCs Asian GRM Benchmark Is Tracking Nearly $4/bbl Lower QoQ

Our Marker Indicates A Steeper Decline For IOC, BPCL, HPCL & RIL

Marketing Margin Are Also Tracking Much Lower QoQ

Lower Mktg Margin Pushing Integrated Margins To A Six-Quarter Low

Given A Weaker-Than-Est Election Mandate, Fears Of A More Populist Govt Have Risen

This, Along With Falling Margin, May Drive A De-rating Of OMCs

Prefer ONGC Over IOC, BPCL & HPCL

CLSA On Power Sector Modi 3.0—100-Day Power Plan

NTPC Is Leading The Way With 8.8 GW Of Tenders Announced This Week

NTPC Orders In Sync With The Govts Plan, While Crystallising Its Decadal Growth Path

Believe Off-Shore Wind Subsidies Could Be Postponed

Hydro Policy Is Important For India’s Net Zero

NTPC, NHPC, Power Grid & BHEL Are Key Beneficiary Of The 100-day Power Plan

MS On Wipro Underweight Call, Target `421/Sh

Mega-Deal In US Could Be Taken Positively In A Tight Discretionary Spending Environ

Co Has Been Awarded A Large Deal By A Leading Comm Services Provider In The US

Wipro Will Provide Managed Services For Some Products And Industry-Specific Solutions

Total Size Of The Contract Is $500 m & Tenor Is Five Year

Believe Near-term Growth Could Lag Peers & Until Growth Gap Narrows

P/E Multiple Gap Could Remain Wide As Well

MS On L&T Tech Underweight Call, Target `4,200/Sh

Live Demos & In-Depth Project Showcases Demonstrated Deep R&D Focus

Live Demos Indicates Rich Domain Experience & Long-Standing Client Relationships

Believe Co Is Well Positioned To Benefit From Rising Outsourcing Trend In ER&D Services

However, Near-Term Macro Concerns & Invst Phases Create Earnings Headwinds

Jefferies On Gas Sector Govt Is Reviving Talks To Include Natural Gas Under GST

Among 4 Key States That Could Hold Sway, 3 Are Under The Ruling NDA

Inclusion Could Lower NG Cost $0.8-0.9/mmbtu

Lower Cost Aids Faster Adoption & Helps GAIL's Tx & Trading Vol In Medium Term

GAIL'S Cons EBITDA Could Rise 2% Assuming It Retains Benefit In LPG Segment

Guj Gas’s Competitiveness To Propane Would Improve By 6%, Aiding Vol Or Margin

Petronet LNG Could See Higher LNG DD

Jefferies On Paint Sector Grasim's Efforts To Penetrate Into Dealerships Were Visible, It Is Still Early Days

Sales team was in place well ahead of the launch

More Than 10 Territory Sales Managers Overseeing More Than 300 Touchpoints

Some Large Stores Have Colour Consultants To Connect With Painters & End-Buyers

Pricing Is At A Discount To The Leader

Aim Is Not To Dilute The Brand, Which Has Yet To See Meaningful Advertising Spend

Sector Should Stay Noisy In The Near-term

MOSL On BEL Buy Call, Target `310/Sh

Despite Reduced Majority, Expect Upcoming Govt’s Policy Focus On Invst-Led Growth

Expect Upcoming Govt’s Focus On Capex, Infra, Mfg & Defence Will Continue

Co’s Order Inflows For FY24 Were Far Ahead Of Its Guidance

FY24 Order Inflow Thereby Hedge It Against Any Slowdown In Order Inflows In FY25

Antique On NMDC Buy Call, Target `296/Sh

Strong Volume & Higher Realisation To Drive Margin

Co Has Taken Two Successive Price Hikes In Q1FY25

Full Capacity Utilisation At NMDC Steel Could Boost Sales Volume FY25 Onwards

Ramp Up Of RINL’s Blast Furnace 3 By JSPL Could Boost Sales Volume FY25 Onwards